Bitcoin Resumes Decline, Why BTC Could Revisit $40K

Bitcoin began a new decline against the US dollar at $43,400. BTC is still at risk for further downsides under the $41,500 mark.

  • After it fell below $43,400, Bitcoin began a new decline.
  • The current price trades below $42,200, and the simple 100-hour moving average.
  • A key bearish trendline is emerging with resistance close to $43,200 in the hourly charts of the BTC/USD pairs (data feed Kraken).
  • A clear fall below $41,500 could lead to a significant decline in the pair.

Redefinition of Bitcoin’s Price

Bitcoin prices attempted to correct their downward trend above $42,500. BTC reached $43,000 but was subject to strong selling interest.

Price also failed to maintain above $43,000, and below the simple 100 hour moving average. The price fell below $42,500, triggering a new decline. It traded at $42,000 after a bearish trend.

Now, it is trading at $42,200 below the hourly simple moving median of 100. The hourly BTC/USD chart shows a significant bearish trendline with resistance close to $43,200.

Near $41,805, a low has formed and the market is consolidating its losses. Near the $42,185 area, there is immediate resistance to the upside. This is near the 23.6% Fib Retracement level that marked the decline from $43,416 high to $41,805 low.

It could reach $42,600 as the next resistance. The pivot zone is close by and near the 50% Fib level, which marks the recent fall from the $43,416 swing high to the $41,805 lower. It is currently forming resistance near $43,000, and the 100 hourly SMA.

Bitcoin Price

Source: BTCUSD at TradingView.com

Bitcoin must cross the $42,600 resistance level and reach $43,000 to see any decent price increase. If the previous scenario is true, then the Bitcoin price might rise towards $43,600 resistance.

BTC Losses:

Bitcoin could move lower if it fails to break the $43,000 resistance level. Near the $41,800 mark, there is immediate support for the downside.

Next major support can be seen at the $41,500 mark. Losses could be accelerated if the price falls below $41,500. If this happens, then the price might drop below the $41,500 support level in the short term. 40,000. This could be the next support.

Indicators technical

Hourly MACD – The MACD is now gaining pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.

Major Support Levels – $41,500, followed by $40,500.

Major Resistance Levels – $42,600, $43,000 and $43,600.

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